Hormel Foods Corp
NYSE:HRL

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Hormel Foods Corp
NYSE:HRL
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Price: 30.51 USD 0.59%
Market Cap: 16.7B USD
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Intrinsic Value

The intrinsic value of one HRL stock under the Base Case scenario is 35.34 USD. Compared to the current market price of 30.51 USD, Hormel Foods Corp is Undervalued by 14%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

HRL Intrinsic Value
35.34 USD
Undervaluation 14%
Intrinsic Value
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Hormel Foods Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Hormel Foods Corporation, a stalwart in the consumer staples sector, has built a legacy of nourishing families with a diverse portfolio of products that stretches across various categories, including meats, deli items, and snacks. Founded in 1891, Hormel began its journey as a small meatpacking company in Austin, Minnesota, and has since evolved into a multinational powerhouse renowned for its innovation and commitment to quality. Investors are often drawn to Hormel for its resilient performance, consistent dividend payouts, and strong brand recognition, with flagship products like Spam, Hormel Chili, and the Jennie-O turkey brand, ensuring that it maintains a robust foothold in the competit...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Hormel Foods Corp

Current Assets 3B
Cash & Short-Term Investments 561.9m
Receivables 727.1m
Other Current Assets 1.7B
Non-Current Assets 10.1B
Long-Term Investments 680.4m
PP&E 2.2B
Intangibles 6.7B
Other Non-Current Assets 600.1m
Current Liabilities 1.3B
Accounts Payable 675.2m
Accrued Liabilities 607.8m
Other Current Liabilities 26.7m
Non-Current Liabilities 3.9B
Long-Term Debt 2.9B
Other Non-Current Liabilities 1.1B
Efficiency

Earnings Waterfall
Hormel Foods Corp

Revenue
12B USD
Cost of Revenue
-10B USD
Gross Profit
2B USD
Operating Expenses
-1B USD
Operating Income
1B USD
Other Expenses
-222.9m USD
Net Income
780.8m USD

Free Cash Flow Analysis
Hormel Foods Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Hormel Foods delivered a solid third quarter with $2.9 billion in net sales and better-than-expected earnings. Key brands like Black Label bacon, Jennie-O lean ground turkey, and SPAM showed strong performance. Foodservice continued its growth, marking its fifth consecutive quarter of year-over-year volume increases. Challenges included lower whole bird turkey sales and contract manufacturing issues. Despite these, Hormel maintained effective cost management and confirmed its full-year net sales guidance at $11.8 billion to $12.1 billion, with adjusted earnings per share between $1.57 and $1.63. The company remains committed to dividend growth and strategic investments.

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Fundamental Scores

HRL Profitability Score
Profitability Due Diligence

Hormel Foods Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Gross Profit
Positive 3-Years Revenue Growth
Positive 3-Year Average ROE
50/100
Profitability
Score

Hormel Foods Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

HRL Solvency Score
Solvency Due Diligence

Hormel Foods Corp's solvency score is 62/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Short-Term Solvency
62/100
Solvency
Score

Hormel Foods Corp's solvency score is 62/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

HRL Price Targets Summary
Hormel Foods Corp

Wall Street analysts forecast HRL stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for HRL is 33.44 USD with a low forecast of 30.3 USD and a high forecast of 37.8 USD.

Lowest
Price Target
30.3 USD
1% Downside
Average
Price Target
33.44 USD
10% Upside
Highest
Price Target
37.8 USD
24% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
25
50
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100
Shareholder Yield

Current shareholder yield for HRL is .

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Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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HRL News

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Profile

Hormel Foods Corp Logo
Hormel Foods Corp

Country

United States of America

Industry

Food Products

Market Cap

16.6B USD

Dividend Yield

3.71%

Description

Hormel Foods Corp. engages in the production of meat and food products. The company is headquartered in Austin, Minnesota and currently employs 20,000 full-time employees. Its segments include Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold predominantly in the retail market, along with the sale of nutritional and private label shelf-stable products to retail, foodservice, and industrial customers. The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork, beef, and poultry products for retail, foodservice, deli, convenience store, and commercial customers. The Jennie-O Turkey Store segment consists primarily of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and commercial customers. The International & Other segment includes Hormel Foods International, which manufactures, markets, and sells Company's products internationally.

Contact

MINNESOTA
Austin
1 Hormel Pl
+15074375611.0
www.hormelfoods.com

IPO

1990-01-16

Employees

20 000

Officers

Chairman, President & CEO
Mr. James P. Snee
Executive VP & CFO
Ms. Jacinth C. Smiley

See Also

Discover More
What is the Intrinsic Value of one HRL stock?

The intrinsic value of one HRL stock under the Base Case scenario is 35.34 USD.

Is HRL stock undervalued or overvalued?

Compared to the current market price of 30.51 USD, Hormel Foods Corp is Undervalued by 14%.

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